Nov 16 - Event Video
Presentations by David Schwimmer, CEO and Anna Manz, CFO.
(audience laughing)- Good evening, everyone and welcome to Paternoster Squareand hello to everyone who's following us on the webcast.I'll shortly hand over to David,but first I'll just take you through the planfor the next day or so.After hearing from David and Anna through to about 6:30,we'll head off to The Ned for dinner.Table numbers are on your lanyardsand your places will be individually named .For tomorrow, you'll be given a second lanyard,which will have a personalized agenda on it.And after we come back at around 8:00 a.m. for breakfast,we'll be back in here for the webcast presentations fromSatvinder and Ron between 9 and 10and then we'll move into the breakouts.Now the breakouts are designed to give youa deeper dig into areasthat we've touched on in the presentations,and they'll mainly be Q&A in format.And then we'll be back here at 3:15 for the panel Q&Abefore witnessing a market close ceremony at 4:30.So please enjoy yourselves,ask questions,and talk to our many leaderswho are here throughout the event.And with that, we'll kick off the event proper.David.- Thank you.So, good evening and welcome.It is really great to have you all here.I'm delighted to see many familiar faces,but I must also say with over 10 billion poundsof our stock placed this year,I'm also delighted to welcomethose of you who may be new to LSEG.So, I'll start by speaking brieflyabout the journey of the last three yearsbringing us to today.I'll then talk about how we are clearly differentiatedboth for our customersand also for you, for our investors.And most importantly, I'll highlight the great opportunitiesfor growth that we have in front of us.As you go through the presentationsand breakouts that will follow,you'll be able to hear more aboutall of these in greater detail.So back in 2020, LSEG and Refinitiv were two separatebut complementary businesses.We had the same customers,but we provided different services.LSEG's heritage was in European equityand derivatives marketswith a world-class index business.Refinitiv was a global Data and Analytics businesswith leading execution platformsin FX and fixed income.Both groups had long-term robust relationshipswith key stakeholders,but it's fair to say that LSEG had a stronger brandand a more consistent sense of trust with customers.And although LSEG was a businessmainly based on transactional revenue,it had a stronger growth track record.We announced the Refinitiv acquisitionjust over four years ago.It was big, surprising,and transformational for LSEG.And the execution risk gave a lot of people pause.So we had a few points to prove to all of youover the last three years.And when we gave our 5 to 7% growth guidance back then,there was a degree of scepticismas to whether we could hiteven the bottom end of that range.I'm pleased to say we have achieved itevery year with organic growthclearly towards the upper end of what we laid out.Within that, the turnaround in Trading and Banking was keyand we've delivered that with seven quarters of growth,and that is before we transformed this businesswith Microsoft.We've also delivered on our synergieswith bigger cost targets delivered fasterand revenue targets significantly increased.And we've actually achieved over three percentage pointsof underlying margin improvement.Along the way, the perimeter has changed a lotwith investments with Microsoft,the acquisition of a few early stage companiesand the sale of the high margin Beta business.These are all moves that make our businessbetter set up for growtheven if they have had a short-term dilutive impact.And finally, our partners in the Blackstone consortiumhave done a great job in exiting their positionin an orderly way with nearly a quarter of LSEG stockmoving into new hands this yearand the Blackstone consortium stake dropping to 11%.So, on this slide,let's look at the growth performance in more detail.As some of you will rememberat our last Capital Markets Day in July 2021,we built up that growth target line by linethrough our D&A business.We have met or exceeded every single one of those targets.So, hitting our guidance has not just beena top-down exercise where we reach the targetwithout performance in certain areas.We've done what we set out to do line by line.We've taken businesses that were pretty muchall underperforming and losing market sharein their respective marketsand we have brought them up to at least market level growthin the space of 2 1/2 years.And as you'll hear throughout the event,there is so much more to go for.You've heard us talk a lot about synergy deliveryover the past few yearsand Anna will give a recap on that journeyin just a few minutes.But I wanna talk about the real integrationthat we have driven across the combined businessbecause remember, both old LSEG and old Refinitivwere themselves a combination of businessesthat hadn't undergone much integration along the way.So our ambition was much bigger than taking out costand removing areas of overlap.I've talked in the past about how we have beenreally integrating our businesses,our systems, and our network infrastructure.We are well on our way to creating a transformed business,one that is simplified, resilient, and unified.We are simplifying and improving the product setfor our customersand this is showing up in howthey are responding to those changeswith significantly higher customer satisfaction.We're also transforming the technology we useto run our business.We have made our platform much more resilientwith incidents down by 2/3 over the last two years.And we are unifying our business.Our brand campaign is improvinghow we show up to the market,bringing clarity and simplicity to what wasthe hodgepodge of over 20 branded products.All of this has only been possiblebecause we've created a new culture.We are a much more collaborative organization,breaking down silosand working across the group effectively.Our transformation is also building engineering muscleand improving the employee experience,as you'll hear in the breakouts tomorrow.We're also much more data-driven in our decision-makingas we build a high performance culture across the groupwith more stretching aspirations and targets at all levels.We've built a great leadership team too.We now have a very strong blend of deep industry experience,LSEG heritage and new leadership from a range of industriesand this sets us up really wellto deliver our next leg of growth.You'll get the chance to talk to most of these peopleat dinner and through tomorrow.I will just take this opportunityto recognize Tony McCarthy.Where's Tony?He was right here.Who announced his retirement a few months ago.Tony has had a long and distinguished careerin financial markets technologyand has been a great CIO for us these past four years.Irfan Hussain will join us from Goldman Sachsto succeed Tony in the new year.And given our divisional structure from 2024,which we've just announced,I'd like to call out Fiona Bassett and David Wilsonwho are bringing great insight and energy to their roles.We're not covering FTSE Russellor Risk Intelligence in any detail at this CMD,but we will definitely provide opportunities for youto engage with them next year.So to wrap up, we've come a long way in the last three yearsand our team, our people are very proudof what they have achieved.LSEG today is a strong launchpadfor what we plan to achieve in the next few years.Our services are vital to our customers.Our end markets are growing.We're highly diversified with recurring revenueand very strong cash generation,and we have a highly differentiated approach.We also have a long history of trusted partnership.Our ecosystem is open and interoperableand we are increasingly linking our businesses togetherto provide more integrated services.Let's see how the new brand campaignpulls all of that together.And then I will talk about how we are differentiatedboth for our customers and for you, our investors.(whimsical music)(vocalizing)- [Narrator] In the world of finance,names can be a bit misleading.Take ours for instance, pronounced L-SEG,AKA London Stock Exchange Group.Sure, we're in London, but we're also here, here, and here.In fact, we do business in 190 countries.We're practically everywhere, except here.Well, not yet anyway.We're proud to be one of the world's biggest,most international stock exchanges,connecting capital with ideas for centuries,but that's just part of what we do.Today we connect the news, information, insights,and systems to create possibility across the markets,partnering with almost every majorfinancial firm in the world.You see, others do some of what we do,but not everything we do.Instead of LSEG, we could have called ourselvesthe London-and-practicallyevery-other-place-in-the-worldstocks-bonds-currency-data-analytics-indicesrisk-management-clearing-exchangemulti-asset-class-group.(whimsical music)But that's a little wordy.(whimsical music)LSEG.- So, what makes our business different?And I'm looking at it here through two lenses.What makes it different for our customersand then what makes it different for you, our shareholders.We are truly global.We span multiple asset classesand we provide services through the entire trade life cycle.None of our competitors has the breadth of offeringor the global reach of LSEG.This in turn supports genuinelong-term partnerships built on trust.From a financial perspective, the nature of our services,the markets we are aligned to and relationships we havemean that the quality and visibility of our earningsare very high and not correlated to a single driver.I'll unpack each of these.We are multi-asset classand we operate across the trade lifecycle.And we are a genuinely global businesswith people in 65 markets serving customers across 190.So whether you want to raise capital,research investments,benchmark your performance,check out whom you are planning to do business with,execute your trade,or clear it in a low risk and efficient way,we are your partners.And we're your end-to-end partners across equities,fixed income, and foreign exchange.And we have large parts of the trade lifecyclein commodities and other asset classes.No one else offers this breadth of product and service.And this breadth and depthis a true strategic differentiator.Many of you have heard me talk about howthe nature of our conversationswith customers has changed since the Refinitiv deal.Customers recognize that because we serve themacross so many different parts of their business,our relationship is not that of a typical supplier,we become a strategic partner.We are increasingly working in partnershipwith our customers' leadership teamsworking together to solve problemsand create opportunities.We help them simplify their business,reduce their reliance on multiple other vendors,and drive growth, innovation, and efficiency.We have competitors in each segment,but they tend to be much more monoline in what they offer.And our customers really value our breadthand the benefits that it brings them.Crucially, we work in partnership.It's popular to talk about customers as partners,but for LSEG it is in our DNA.Look at the businesses we run,whether it's the Clearing House, London Stock Exchange,Tradeweb, Turquoise,these were all businesses foundedor built by the financial institutionsthat are now our most important customers.They have successively entrusted usto run the critical market infrastructurethat they rely on every day.And that trust has continuedas we've invested in technology, innovation,and new services to make those platforms better and betterand to grow them.And we're also proactive to partnerwhere we know we don't have all the answersand where one plus one can make much more than two.Our close collaborations with Microsoftand BlackRock are great examples of thatand you'll hear more about both tomorrow.Let me turn it over to some of our partnersto share their thoughts.(rumbles)- LSEG is a global leader in Data and Analyticsand financial markets infrastructure.(high speed electronic beeping)Every day we help our customers raise finance,(high speed electronic beeping)make investment decisions,manage risk, and optimize capital.Our products span the whole financial markets value chainand across multiple asset classes.We are a leading player in real time data,benchmark and indices,fixed income and foreign exchange trading,and the clearing of interest rate derivatives.We're partnering to transform our industry.(high speed electronic beeping)- [C.S.Venkatakrishnan] Behind every product, behind every offering,behind every trade we make,every analysis we provide for a clientis a very large and copious amount of data analysis.So it's really important, therefore, for usto have partners like LSEGfrom whom we can source the data,to whom we can share data,and upon whom we can rely.(high speed electronic beeping)- [John Hinshaw] The LSEG partnership that HSBC has enables usto provide not only data to our colleaguesto help our customers make decisions,but also real-time market data so we can see trends,make forecasts, and better manage our bank.- [Amy Hong] The strategic dialogue that we havewith LSEG's businesses,Data and Analytics, Capital Markets,and Post Trade is extremely valuable.The global nature of LSEG's footprintmeans that whether we're servicing clients' needs in Europe,in the Americas, or Asia,we have touchpoint with the LSEG team across the board,- [Lola Grange] Through the acquisition of Refinitivand the partnership with Microsoft,we are transforming our services for customers.- [John Hinshaw] We've always trusted LSEG to provide uswith information and market indices capabilities.But Refinitiv really broughta whole new set of capabilities,gives us a competitive advantage,gives us more information for our customers.- [C.S.Venkatakrishnan] What LSEG did was capture what the essenceof a financial company is todayor a financial infrastructure provider is.We want large data providers upon whom we can relyfor quality, for resilience,for continued growth in capability.And with the purchase of Refinitiv by LSEG,that's done it for LSEG,it's done it for Refinitiv,and it's done it for us.- [Sudhir Nair] We've built a true working modelstrategically aligning across the two firmsand having our teams work togetherto create a shared roadmapof innovation and new product developmentfor the benefit of our mutual clients.- [Lola Grange] LSEG is at the forefront of innovation.We build and run platformsthat solve our customer's problems.Using LSEG's market leading dataand Microsoft's Cloud and AI capabilities,we will empower our customerswith the next generation of services.- [Sudhir Nair] We believe that the future of investment managementand the future of technology are highly aligned,and our collaboration with LSEG is a core componentof how we will ultimately deliver for client needs.To us the future is about the whole portfolioand building technology, data and analyticsin support of that whole portfolio.- [Scott Guthrie] Both the data setsand data analytics products that LSEG has,as well as the trustand the deep partnerships that they haveacross the financial services space,it really is very unique.I think we're gonna find with the generative AIas we apply it to that data platformis only gonna enable and unlock new use casesand I think with LSEG and Microsoft partnering together,we're really on the cuspof unlocking tremendous new potential- [Lola Grange] With the digitization of marketsand the rise of data-driven trading,we are shaping the major trends in our industry.We are helping customers to manage risk,comply with increased regulations,and optimize capital.- [Amy Hong] The development of post-trade solutionsis a great example of this.In consultation with Goldman and market participants,LSEG is seeking to import best practices and innovationfrom the cleared markets to the uncleared markets.I expect that the industry will havemuch better tools at our fingertipsto manage our riskas well as optimize our capital footprint.- [Scott Guthrie] I think one of the thingsthat we're looking to enable together is really speed.How do we enable financial institutionsto make decisions faster,to make better decisions and with more confidence.The ability both to use real-time datato be able to look at historical dataand to be able to merge itwith your own proprietary data setsand help you assess and make those decisions quickly.- [John Hinshaw] Our customers every dayare transacting trillions of dollars,millions of transactionswith all kinds of market data at their disposaland we rely so heavily on LSEG's data every dayto run our business.And then you combine that with the Microsoft partnership,which is our core infrastructurefrom a technology perspectiveand now we have quite a unique capabilityof data, analytics, technology running our bank every day.(bright music)- [David Schwimmer] So, great customer relationshipsand strong partnership with the industry.What does that mean for our investorsand the shape of the business that you own?We are global and highly diversified by region,country, customer, and product.This helps us on both offense and defense.Our customers are increasinglylooking to consolidate suppliersand want partners who can match their own footprintsacross markets and productsand that plays to our strengths.We are not overly relianton any single market product or customer type.Our business has a number of natural offsetswhere market conditions thatmay drag on one part of the businessnaturally boost another.Let's look at how that translates into our revenue profile.We have a high proportion of recurring revenue,nearly 3/4 of our business in 2022.These are subscriptions for servicesthat tend to be pretty stickyand they're not at all concentrated by product or customer.I think there is a lot of appreciationof that very high quality, recurring revenue,but one point that is often missed is the very high qualityof our transactional revenue.Almost all of it comes from two businesses,Tradeweb and Post Trade.And these both have excellent track recordsof multi-year double digit revenue growth.They've combined strong market tailwindswith consistent innovation and partnershipand I'm confident that they can continue to do so.One way to think about the quality of our revenueand the diversity of our businessis to look at market correlationsor rather, the lack of them.And here we've plotted LSEG's organic growthin each of the last five years,both before and after the acquisition of Refinitiv.You can see how our growth has consistently beenin that mid to high single digit rangeevery year since 2018.But look at the data pointsthat you might think would impact our business.Interest rates have been zero and then risen very steeply.Equity markets have risen and fallen significantlyand the same for equity issuance.The pandemic and geopolitics have driven volatilityand the fact is, these factors do have an impactin parts of our business,but the overall growth drivers we enjoyand the diversification of our businesscontribute to a really consistent top linewhatever the weather.Okay.I've talked about what we have achievedover the past few yearsand what makes us uniqueand different from others in the industry.Let's talk now about the big opportunity ahead of us.First, our markets are large and growing.We operate in markets with around60 to 70 billion pounds of spendthat are growing anywhere from mid single digitup to double digitsand our market shares are in a sweet spot.We're well-established so we have the opportunityto grow with the market,but we also have room to grow share as well.There is also a significant unserviced TAMwhich we think we can increasingly address,particularly in our partnership with Microsoft.This is in areas such as data management as a service.It's a big area of spend for many of our customersand Satvinder will touch on this more in the morning.Second, the trends such as increasing demand for dataand new technologiesthat are driving growth play to our strengths.In many cases, we are investingto shape these trends ourselves.We're at the heart of industry change.Whether it's the rapid rise of generative AIor the provision of ultra-low latency feeds,the constant innovation at Tradewebdriving the transition in their markets,or the creation of post-trade solutionsto optimize capital efficiency.We tried to create a slide showing which of these driverslined up with which of our businesses.But we abandoned the slidebecause it just showed a tick in every box.Effectively, all of our businessesare benefiting from these mega trends.So, as we move to the next phase of growth,which underpins the new medium-term guidancethat we have just published today,we see four powerful driversaccelerating our growth into the future.For all of them, you will seethat we're not just standing stilland waiting for growth to happen to us.We're driving that growth through product innovation,investment,partnership,and opening new markets.I'll go through each of these over the next few slides,but tomorrow you will be able to learn aboutmost of them in much more detail.First I'll start with the continuing strengthof our existing business.Let me touch on three of our world-class businesses,which together make up nearly half of LSEG.Our Data and Feeds businesshas a really strong market position.Leading in Real-Timeand gaining share in Pricing and Reference Services.As you'll hear from Satvinder and Stuart Brown tomorrow,there is much more growth to go for here.I've talked before about Tick History and PCAP data.That combination has a really long runway for growthand is extremely hard for our competitors to replicate.We're also building capabilityin direct feeds and machine-ready textand we're continuing to deliver Refinitiv revenue synergies.You can see how growth has acceleratedthese last three years.Tradeweb is another great growth story.I touched on its 14% revenue CAGR a few minutes ago.Its track record speaks for itselfbut its pace of innovation has opened upso many avenues for future growth.The core driver of electronification remains intactas you can see from the penetration rates on the right,but the scope for international expansion,growing in new product areas,and Tradeweb's closer collaboration with the rest of LSEGposition us well for continued momentum in the future.Tradeweb's president, Tom Pluta is with us hereand he will talk more about thatin the Capital Markets breakout tomorrow.And then Post Trade.I often get asked if Post Trade has reached the endof its impressive growth trajectoryor if we face a big regulatory headwindfrom EU changes after Brexit.Post Trade continues to grow stronglydue to both market conditionsand our own innovation and investment.OTC derivatives volumes increased by 56% in 2022to $39 trillion notional gross valueand our Post Trade business has compounded annuallyat 10% over the last four years.Post Trade has a strong reputationwith its members and customers.This allows the business to continue growingin its core swaps franchiseand also grow further in newer products like Forex,repos, and CDS.We are attracting new customers such as pension fundsthat are increasingly required to clearand via international expansionwith our first two Singapore memberssigning up this past year.And I will talk about post-trade solutions shortly.Let's look at three other businesses nowwhich add up to around 20% of LSEG.In each of these, we have strong market positionsand we have significant investments in flightto make them even stronger.Our Benchmarks and Indices business, FTSE Russell,has a great brand and is a top three global provider.We have particular strengths in the Russell franchiseand the FTSE 100,but also in benchmarks for fixed income and FX.It's in a market sweet spot with sustained growthcoming from indexation, passive investing,and trends like ESG.But we are also seeing newer driverslike self-indexation and technology-driven solutions.Our transformation program is making good progressand we are already seeing faster time to market,but that's really going to leap forward on completion,making the production of a new bespoke indexpossible in days down from months with the legacy systems.We're also leveraging technologyto improve distribution for our customersso they can receive our datain a way that best suits their needs,be it via APIs or the cloud.And FTSE Russell is partnering across the group as well,driving revenue synergiesand now collaborating with Tradeweb on pricing data.Looking ahead, there is a real opportunityto commercialize the assets we have more effectivelywith better geographic coverage,better customer segmentation,and a tailored approach to different asset classes.We've already begun to see improved growthin recent quartersand we have plenty of levers to continue that.In Risk Intelligence,which is the new name for the Customerand Third-Party Risk business,we're aligned with a very high growth segmentgrowing double digits.World-Check is a leading platform in KYC AML screeningand gives us exposure into the wider corporate marketoutside financial services.We've made significant investments through M&A,moving into the digital identity and fraud market,And we've seen a real uptick in usagewith the migration of World-Check to the cloud,demonstrating what this could do across our estate.We see three important next steps for this business,integrating the various platforms we haveinto a single customer solution,building a more mature sales modelincluding channel partners and digital sales,and continuing to look for opportunitiesin the higher growth segments of the market.And LSEG FX.There are two really important aspects of our FX business,which has a great market position and customer loyalty,but the franchise has been running on pretty old technology.First, we are replatforming that technologywhich will deliver much better functionalityand will be 10 times faster.You may have seen the first productto come out of this replatforming.Our new non-deliverable forwardsmatching platform in Singaporewent live this past Mondaybringing together the liquidity, execution,operational and capital benefitsof an NDF Central Limit Order Bookand clearing for the first time.Second, we are building a full FX ecosystemfrom pre-trade through to clearingand also incorporating a link to Tradeweb.But it's important to note that this is an open system,not a closed one.We wanna build a platform that makes workflowssimple and efficient,but gives customers the optionto work with others at any stage in the trade.The third wave of our growthcomes from our major partnershipsas we transform our industry,you will all be familiarwith what we plan to do with Microsoft,but this diagram gives a little more colorand you heard Scott Guthrie in the video a few minutes agotalk about the strengths of the partnershipand the opportunities that it creates.We are building a brand new environment for our productsand data in Azureand that will be the foundation of the partnership.And we're developing a really wide range of new servicesacross data intelligence, analytics, and workspace.Like the (clears throat) meeting prep appthat Microsoft introduced at their Ignite event yesterdayand another new capability, open directory.Satvinder will take youthrough this in more detail tomorrow,but we will change how our customersdiscover and experience data.We will introduce AI-enabled appsand a modeling infrastructure that will improve productivityand enhance customers' own data excellence,and we will integrate LSEG Workspace into Microsoft Office,which will simplify workflows and expand communities.All of these add up to really material opportunitiesboth in our existing marketsand in new areas of customer spend,which we currently do not address.And I'm really delighted to reportthat progress in less than a year has been very good.We've benefited from a couple significant developments.First, the rapid evolution of generative AIwith Microsoft as a leading player in the market.And second, the introduction of Fabric,Microsoft's end-to-end data platformwhere we are a key development partner.It's already saving us time and efforton our data platform journey.We are getting great engagementwith some of our biggest customersthrough our design partner programand this operates with both key decision makersand with people who will use these products every day.And Satvinder will talk through that processin more detail tomorrow.And we are ahead of plan in terms of product launch.We have previously indicated that our customerswould start to see the benefitsof the Microsoft partnership in the second half of 2024,but we're making excellent progressand we will have the first new applicationsin the hands of customers in the first half of next year.And then a steady drumbeat of pilots, launches,and ongoing enhancements.And you'll hear much more about all of this tomorrowas you meet with the peopledelivering the partnership for LSEG.I'd like also to talk about how we are partneringwith the industry on post-trade solutions.LCH has a history of strong and trusted partnership.We acquired LCH from market participantsand many are still engaged minority shareholders.Our bank members face two main problems,rising capital requirementsand a lack of standards or consistencyin bilateral or uncleared markets.We've been working with the industry for some timeto address these challengesand post-trade solutions is the answer.With the acquisitions of Quantile and Acadia,which is also, was also an industry-owned consortium,and our SwapAgent platform,we're building a new suite of servicesand these will optimize capitaland standardize process across the whole trading book,both cleared and uncleared.When you consider that OTC tradingis roughly 50% cleared and 50% uncleared,this is a material new opportunity for LSEG.Dan and Isabelle will go through thisin much more detail for you all tomorrow.Finally, we are investingand exploring opportunities for the longer termand this is something that LSEG has always done.The thinking and work we do todaycan be the seed of really substantial businessesin five to 10 years.We see real potential in new industry verticals.So much of the investment we're making with Microsoftas well as the products in areas like risk intelligencehave much wider market applications.Our expertise in data management is second to none.And as all companies and industriesbecome increasingly data-driven,they're going to look to expertsto help them manage their data.We are well-placed to play that role.And in new asset classes,we're investing in developing a trading venuefor private companies to create a continuumfrom private markets to public markets.And we're looking in more detailat digital markets infrastructurein partnership with Microsoft and others.So, to sum it up,as we continue to execute on our strategy,we will continue to transform LSEG.We will develop our businesses from positions of strengthto positions of leadership.Through investment, innovation, and partnershipwe will shape the future of our industry.Growth will accelerate over the medium-term.Margins will expandand our cash generation will improvecreating opportunities for reinvestment in growthand continued shareholder returns.And we will leverage our differentiated customer propositionto become the partner of choiceacross the financial markets value chain.I'm looking forward to the rest of the event.I know you will all get a lot out of itand thanks again for making the time to join us.I will now hand over to Annato talk about how all of this translatesinto our medium-term financial outlook.(footsteps thumping)- Thanks, David and good evening.I'm going to look at our performanceagainst the targets we seton the back of the Refinitiv deal.Then I'll go through the medium-term guidancethat we announced today and some of the drivers behind that.And I'll also cover our capital allocation plans,including the new buyback.And finally the rationale for our new divisional reporting.So let's start with performanceagainst our long-term targets.Income growth has been consistentlyin the upper end of the 5 to 7% rangeand we've seen accelerationthrough the period from 6.1% in 2021to 6.7% for the first nine months of this year.EBITDA margins on an underlying basisare on track to meet guidance.The perimeter of our business has changedsince we acquired Refinitivand we've made five acquisitions.We've disposed of Beta, which is a high marginbut low growth business.And we've announced a transformationalstrategic partnership with Microsoft.Together these have a short-term dilutive impacton our margin of around 150 basis points,but they set our business up for long-term growth.In the absence of these decisionsand excluding the impacts of FXand the Russia-Ukraine war,we'll be delivering a 50% EBITDA margin for 2023turning to revenue and cost synergies.And here we're on trackto deliver against our upgraded targetsand by the end of this year,we'll have largely completed our cost synergy program,two years ahead of schedule.And we're back within our target leverage rangeabout a year ahead of plan.So as you can see, we've delivered stronglyagainst the targets we set ourselvesand we're well-placed as we enter the next phase of growth.Looking ahead, we announced our medium-term guidanceearlier today.Revenue will grow organicallyat mid to high single digit annuallyaccelerating after 2024.And this is as our customers start to benefitfrom some of the big investments we're makinglike index replatformingand the Microsoft partnership.Underlying EBITDA margin will increase over timeas costs grow more slowly than revenue.And capex will remain at the current levelsof 11 to 12% of revenue for 2024and then over time the capital intensity will declineto a high single digit percentage of revenue.And on cash conversion,our cumulative free cash flow will exceed net income.I'll give you more detail on each of these guidance pointson the following slides.You've heard David talk about the big picturesecular growth trends that are driving our industry.I'm gonna break this downand talk to the specific actions we're takingto maximize the opportunity and deliver above market growth.The strategic combination of LSEG and Refinitivdrives growth in three ways.Firstly, through revenue synergies.We expect to exit this yearwith more than 130 million of run rate synergies.And by 2025 this will be 350 to 400 million.So plenty more to go for over the next two years.Secondly, you've heard us talk abouthow we partner with our customers strategicallyand we can do thatbecause of the breadth of our combined offering.As we continue with our sales transformation,we're bringing that model to all of our top 250 accounts,increasing the penetration of our servicesand growing our share of wallet,just as we've begun to do with our biggest customers.And thirdly, the end-to-end workflows that we now haveacross multiple asset classesis a strategic differentiatorand that will come to the full over the medium-term.With regards to pricing, there's a lot of opportunity hereand we've begun to provethat price can be an important driver for our business.Now I think of price in three ways,improving the value of our services for our customers,being disciplined in making surecustomers pay for that value,and increasingly, being paid for the volumesthat our customers use.On the first of these,we continue to invest in our existing products.For example, you see us continue to addfurther data sets that deepen and broaden our data moatand we're rolling out Workspace updates all of the time.These improvements mean customers are giving usbetter and better feedbackand that supports higher prices over time.Secondly, we can be much more disciplinedin our price realization.This will be delivered throughthe transformation of our sales approachand a more empowered and confident sales organization.And you'll hear more about that from Ron tomorrow.And longer term we'll be increasingly movingto a usage-based pricing model.This gives us real time insightinto how our customers are consuming our data and productsand allows us to charge in line with that and upsell.So overall, I would say we're getting smarterwith our pricing approach.The third area of growth is from new products.Much of what we've achieved over the last three yearshas been about fixing the basicsand running an undermanaged business better.What you'll see going forward is the benefitof the investments that we're making in new product.It takes time to build a product pipeline,but we're starting to see a real rhythm of innovationand collaboration with customers.This will deliver new applicationsand enhancements to marketwith increasing regularity.Today, that's most evident in Enterprise Data,but across the rest of Data and Analytics,as well as Capital Markets and Post Trade,there's a lot in the pipelineand you'll hear a lot more about thatfrom the teams tomorrow.And finally, there's geographic expansion.We're already doing this in LCH,for example, with the addition of new membersto our clearing services in APAC.And in Tradeweb, the acquisition of Yieldbrokerconnects the Australian and New Zealand marketswith Tradeweb's global network.In Data and Analytics, this wasn't an initial focus.We wanted to fix our existing footprint and portfolio first.But with that work done,we're now well-placed to tap into geographic growth.And as David mentioned, we're also beginningto expand into new asset classeslike private markets and digital assets.The Microsoft partnership increases the potentialfor every one of these leversand enables new and adjacent market opportunities.The building blocks on this slideare why we can deliver accelerated growth.We've got teams lined up against each one of these leversand we're putting them already,and that's why we're confident in our delivery.Turning to cost.I show you a cost bridge like thisin every results presentationwith investment for growth and efficiency well-balanced.And you can continue to expect itto look like this in the future.Let me talk you through that.Now as I've said before,people and technology make up over 75% of our cost baseand naturally there'll be an inflationary impact.Outside of this, we'll continue to deliver efficienciesand invest for growth.Investment for growth will driveincremental revenue opportunities,some of which should be delivered fairly quicklysuch as Tradeweb.Others take a little longer such as the investmentin some of our early stage acquisitions.On the efficiency side, we've enjoyed the tailwindof significant cost synergies from the Refinitiv integrationand that will benefit us for another year,but that's not the end of the opportunity.Many aspects of our broader transformation programare building a more efficient and scalable platform.Taken together, costs will grow slower than revenuesenhancing our margin.Our EBITDA margin was 48% in 2022and we're confident of improving that over time.If I unpack that by division,our scaled Capital Marketsand Post-Trade businesses sit at 52%and that's largely in line with industry averages.The real opportunity, as you know,lies in Data and Analyticswhere we benchmark below our peers.And this reflects legacy systems, product duplication,and process complexityall stemming from historic underinvestment.Our existing integration and transformation programsare addressing these issues, but there's more to go.We're on a multi-year journeyto create a genuinely scalable platformand one which also improves the servicewe provide to customers.And you'll hear more about thatin the transformation breakout tomorrow.At its heart, the transformation program is aboutend-to-end process and product simplification.And we know we can do thisbecause we've done a lot of similar workas part of the Refinitiv integration.But just to give you a flavor of what we're working on,data and content transformationis just one of our many programs underway.We're modernizing our data sourcing and ingestion.This will result in higher accuracy and speedand coverage beyond the 90 million instrumentswe cover today,as well as the wider provision of unstructured complex data.We're modernizing our technology infrastructure.We're implementing a software-defined networkand migrating physical infrastructure to the cloud.This improves our resilience, automation,and product development capabilities,making our tech stack much more agilefor our evolving business.We're building an e-commerce platformand digitized customer service capabilities.Our top 250 customers account for 55% of our revenues.This platform will serve a good proportionof the remainder of the 40,000 or so customers,which don't always require the high touchhuman interaction that they get today.But it'll also make it easier for small customersto self-serve on our platform.Our EBITDA margin improvement won't be linear,but as I said, we're confidentthat it will improve over time.Moving to capex.We've been investing heavily in our businessand the level of spend has been ahead of our peers.There's a few reasons for this.First, when we acquired Refinitiv,we were aware there was historic underinvestmentin the business that would require addressingand we're already seeing the benefitsof these investments coming through in our revenue,but there's more to come here.Secondly, we're integrating these two businessesfrom the bottom upand delivering sizable cost and revenue synergies,which comes with a cost to achieve over a five-year period.And lastly, we've been investing in new capabilitiesto drive future growth.Looking ahead, we expect 2024 to have a similar levelof capital intensityat 11 to 12%.Beyond this, the capital intensity will decline over timeto a high single digit percentage of revenueeven as we continue to invest for growth.On the previous slide, I talked about the capex outlayto integrate LSEG and Refinitivand deliver the cost and revenue synergies.We're over halfway through the total combined cash spendrelating to the integration.We're a highly cash generative businessand as this rate of integration spenddeclines sharply in 2025, the final year of the integration,this will improve even further.Over the medium-term,our cumulative free cash flow will exceed net income.The strong cash generationallows us to have a balanced capital allocation frameworkwith capacity for organic investment in growthto continue our progressive dividend policyto target M&A where it adds valueand where available to return excess capitalto shareholders proactively.Our M&A focus will continue to be on acquisitionsthat enhance LSEG's offeringthrough new technology capabilities or dataand are value accretive for the group.Value accretion needs to be measured over different periods.The early stage businesses that we've acquiredover the last couple of years have longer dated returnsbut have huge potential.More established businesses should pay back more quickly.Other important considerations for us are first scalability.We look at services and productsthat can be scaled across the groupthrough our nearly 3,000-person salesforceand our global network of customer relationships.Secondly, opportunity cost.The cash and time to develop these in-houseversus acquiring the capabilities.And finally, structure.We ensure our deals are structured appropriatelyto tie maximum consideration to stretching performanceand deliver value accretion for the Group.From a strategic perspective,we scan for opportunities that fulfillone or more goals for usthat could be building out functionalityin an existing offeringlike TORA's order and execution management capability.We also look for opportunitiesthat expand our product offering like GDC,which built out our digital identity verification business.And then there are acquisitions which add new productsor markets to our customer proposition,which is where Acadia fits in.MayStreet does all three of these thingsfrom a strategic perspective.Today we announced a simplification to our dividend policy.Our old policy reflected the pre-Refinitiv businessthat was more exposed to transaction volumes,which made it a bit harder to predictfinancial performance for the year.Now our revenues are largely recurringand more visible as a result.The policy doesn't change the expected payout.The coverage ratio remains at 2.5 to 3 times.The interim dividend will now be setas 1/3 of the expected full year dividend,giving shareholders more consistencybetween interim and final dividends from year to year.Our dividend policy remains progressivebuilding on our notable track record.And we continue to be activein returning excess capital to shareholders.We've returned nearly 4% of our equity to shareholdersin the last 15 months through buybacks.And today we announced our planto return a further billion via share buybacks in 2024,testament to our continued strong cash generation.And we'll provide more detail on the structurewith the 2023 prelims.From 2024, we'll be revising our reporting structureto align divisional disclosureswith management reporting lines.This primarily impacts the Data and Analytics businessthat we report today.For the new Data and Analytics perimeter,revenues will be grouped by product typesunder three business lines:workflows, data and feeds, and analytics.This grouping allows for identificationof the underlying trends in products and usagerather than trends in user groups and communities.Workflows will consolidateall of our user interface businesses,comprising Trading and Bankingplus the desktop activities previously reportedwithin Investment Solutions and Wealth.Data and Feeds will consolidate all of our data businessesand comprise Enterprise Data,plus the Data and Feeds activitiespreviously reported within Investment Solutions and Wealth.Analytics was previously reportedwithin Investment Solutions.Benchmark and Indices will be split outfrom Investment Solutions and be renamed FTSE Russellas a separate division.And similarly, Customer and Third-Party Riskwill also become a standalone divisionand be renamed Risk Intelligence.There'll be no change to our Capital Marketsor Post-Trade reporting apart from the combinationof Non-Cash Collateraland Net Treasury Income revenue lines.So, to wrap up,we've built a strong track record of performanceand delivered on the Refinitiv acquisition.We've announced a clear step up in our growth expectationsalong with improving profitabilityand strong cash flow ahead.And we've signaled our intention to return a billionby share buybacks in 2024.I'm really looking forwardto catching up with you all later on.And with that I'll pass back to David.- So I'm gonna close by justrepeating our vision for LSEG Tomorrow.And this really is what you will take away from LSEG,in fact, tomorrow.(audience laughing)The presentations and the breakoutswill give you much deeper and broader insightsinto our transformation,our growth, and our partnerships.And I know the teamsare looking forward to talking with you.So now, it is time for dinnerin The Tapestry Room at The Ned.It is a 10-minute walk down Cheapsideor one stop on the Tube for those so inclinedfrom St. Paul's to Bank.So we look forward to seeing you there.Thank you very much.(audience applauding)